Kansas City Pres. Esther George on the wires saying:

• speed at which interest rates should rise an open question
• moving too fast risks over steering
• communicating the path for rates is far more consequential than the speed of policy change
• recession projections suggest to me that rapid rate hikes risk tightening faster than the economy and markets and can adjust
• abrupt changes in rates could create strains in the economy
• transmission of policy to economy will be lagged and subject to considerable uncertainty
• uncertain as to how high rates will need to rise
• pace of rate increases need to be carefully balanced against the state of the economy and financial markets
• steady path of rate increases could improve market functioning and assist balance sheet one off
• GDP still 2.5% below pre-pandemic trend suggests pandemic data long-lasting damage to the supply-side, particularly service sector